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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

CDSL - Reiteration of SEBI Circular on Faster Rights Issue with a flexibility of allotment to specific investor(s)

12-Mar-2025 | CDSL/OPS/DP/POLCY/2025/174

CDSL has reiterated SEBI circular regarding Faster Rights Issue with a flexibility of allotment to specific investor(s), effective from 7th April 2025. Key highlights - 1. The time period for completion of the Rights Issue is specified in reference to Regulation 85 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The Rights Issue shall be completed within 23 working days from the date of approval of the Board of Directors of the issuer. 2. Revised timelines for the completion of the various activities involved in Rights Issue process has been specified which are attached as Annexure - 1 to the circular. 3. The time period for which the rights issue shall be kept open for subscription in terms of Regulation 87 has been specified, which is for a minimum period of 7 days and a maximum period of 30 days. 4. The issuer is now required to disclose the process of credit of REs in the demat account and renunciation thereof only in the letter of offer, earlier the same had to be disclosed in both the letter of offer as well as the abridged letter of offer. (Para 1.3.1 of Chapter 2 of Master Circular for Issue of Capital and Disclosure Requirements) 5. A new sub-para 1.5 regarding the filing of offer letter and the payment of fees for rights issue is inserted under Para 1 of Chapter 4 of Master Circular for Issue of Capital and Disclosure Requirements - "For rights issues the issuer shall file the letter of offerwith SEBI through email at cfddil@sebi.gov.inand the payment of filing fees shall be made online through payment link provided on SEBI website under the fees category 'Filing Fees'". Please refer to the attached document for more information.

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